COMMENTS ON PERFORMANCE OF LONDON OPERATIONS

Please find attached the announcement of Markel Corporation’s first quarter financial results for the period ended March 31 2004.

For the first quarter Markel Corporation reported net income of $4.29 per diluted share, an increase of 16% over the same period last year. The combined ratio was 96% for both the quarter ended March 31, 2004 and 2003. Alan I. Kirschner, Chairman and Chief Executive Officer, commented, “During the quarter, we increased book value per share by $9.32. We achieved our goal to build shareholder value with excellent investment returns and continued underwriting profitability.”

Markel International represents Markel’s London operations and writes specialty property and casualty insurance through Markel International Insurance Company and Markel Syndicate 3000.

For the quarter ended March 31 2004, Markel International’s gross written premiums increased to $211.0 million from $ 199.7 million largely as the result of currency movements.  Markel International reported a combined ratio of 119% for the first quarter of 2004 primarily due to $30.0 million of loss reserve increases on U.S. casualty reinsurance business, financial institutions risks, and general and professional liability exposures written from 1997 to 2001.  Before prior years’ reserve increases, underlying underwriting profitability continued to improve with the underlying combined ratio of 101% showing continued improvement over the 103% reported in the same period last year.

Commenting on the performance of the London business, Richie Whitt, Executive Vice President and Chief Administrative Officer, said: “Markel International continues to make good progress in developing its underwriting performance.  We are confident that we will continue to see further improvements to meet our objective of consistent underwriting profits. While it is disappointing that our results have been impacted by adverse claims developments in largely inherited, long tail business, we are committed to a prudent approach to reserving for these exposures.” 

ENDS

For further information:

Derah McCall, Markel International